Dear Heather: I am thinking of selling my house but I was hoping to save the commission by selling it myself. What are your thoughts? — A SELLER

Dear Seller: An agent can actually save you thousands of dollars, but like anything in life not all are created equal.

Our market intelligence tells us that often times an agent can get you a higher price for your property, and can save you a ton of your valuable time in the process. This more than compensates for the commission. This is because buyers will often discount the commission when they are going directly to an owner/seller. Buyers may also question your negotiation skills and try to take advantage of that. Agents are experienced in pre-qualifying prospects before they even set foot in your home, which can save you hours of time having to ‘tidy up’ for buyers who are not qualified, or even in some cases do not even bother to show up! (It happens!).

Picking an agent is one of those critical issues that many people overlook. There are very specific questions you should be asking to ensure that you get the best representation for your needs. It’s like a job interview, after all you are hiring them to do a job for you. Some agents may prefer that you don’t ask these questions, because the knowledge you’ll gain from their honest answers will give you a very good idea about what outcome you can or cannot expect from using this agent. And let’s face it — in real estate, as in life — not all things are created equal.

Hiring a real estate agent is just like any hiring process — with you on the boss’s side of the desk. It’s critical that you make the right decision about who will handle what as it is probably the single largest financial transaction you will ever make. Here are some sample questions:

1. What makes you different? Why should I list my home with you?

It’s a much tougher real estate market than it was a decade ago. What unique marketing plans and programmes does this agent have in place to make sure that your home stands out favourably versus other competing homes? What things does this agent offer you that others don’t, to help you sell your home in the least amount of time with the least amount of hassle and for the most amount of money?

2. What is your company’s track record and reputation in the market place?

It may seem like everywhere you look, real estate agents are boasting about being #1 for this or that, or quoting you the number of homes they’ve sold. If you’re like many homeowners, you’ve probably become immune to much of this information. After all, you ask, “Why should I care about how many homes one agent sold over another? The only thing I care about is whether they can sell my home quickly for the most amount of money.”

Well, because you want your home sold fast and for top dollar, you should be asking the agents you interview how many homes they have sold. I’m sure you will agree that success in real estate is selling homes. If one agent is selling a lot of homes where another is selling only a handful, ask yourself why this might be. What things are these two agents doing differently?

3. What are your marketing plans for my home?

How much money does this agent spend in advertising the homes s/he lists versus the other agents you are interviewing? In what media (internet, newspaper, magazine, TV, etc) does this agent advertise? What does s/he know about the effectiveness of one medium over the other?

4. What has your company sold in my area?

Agents should be able to show you a complete comparable market analysis for your property, featuring sales of both their own, and other companies’ listings in your area.

5. How much say do you have in the promotional literature and brochures?

Does your agent offer you the chance to review and comment on the promotional material for your property if you wish to?

6. On average, when your listings sell, how close is the selling price to the asking price?

This information should be available from your agent. At Coldwell Banker Bermuda Realty our properties consistently sell within eight percent of the recommended asking price. The performance on this measurement will help you predict how high a price you will get for the sale of your home, and help save you from agents who may overprice your home in order to get the listing.

7. On average, how long does it take for your listings to sell?

This information is also available from your agent. Average days on market are recorded for every listing. The average of the performance on this measurement will help you predict how long your home will be on the market before it sells.

8. How many buyers are you currently working with?

Obviously, the more buyers your agent, and their office colleagues are working with, the better your chances are of selling your home quickly. It will also impact price because an agent with many buyers can set up a ‘buzz on the property’ where many buyers bid on your home at the same time. Ask them to describe the system they have for attracting buyers.

9. Do you have any references from past clients?

Ask to see this list, and then proceed to spot check some of the names.

10. What happens if I’m not happy with the job you are doing to get my home sold?

How confident is your agent in the service s/he will provide you? Will s/he allow you to cancel your contract without penalty IF you’re not satisfied with the service provided?

Evaluate each agent’s responses to these ten questions carefully and objectively. Who will do the best job for you? These questions will help you decide.

Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated confidentially.